Company prices $284.5 million securitization deal backed by non-QM loans
Angel Oak Mortgage REIT (AOMR) has issued a $284.5 million non-QM securitization, a deal that the company said marks an inflection point in its business.
With the capital released from the transaction, the non-QM-focused REIT said it intends to purchase more newly originated, high-coupon loans while continuing to manage liquidity. The securitization will also reduce Angel Oak’s whole loan warehouse debt by 45.6% from the first quarter.
“We believe that this securitization represents an inflection point in our business, as the approximately $30 million of capital that will be released through AOMT 2023-4 allows us to materially expand the loan acquisition activity that we began earlier this quarter,” Sreeni Prabhu, CEO and president of Angel Oak Mortgage REIT, said in a press release.
The residential mortgage-backed securitization includes a portfolio of 606 non-QM loans with a scheduled principal balance of $284.5 million. The loans have a weighted average loan coupon of 4.5%, a weighted average original loan-to-value ratio of 71.3%, and a weighted average original FICO score of 734.
Read more: Angel Oak Mortgage REIT posts full-year financial results
Before the announced deal, AOMR had started actively buying newly originated loans carrying a weighted average loan coupon of 8.2%, a weighted average original loan-to-value ratio of 72%, and a weighted average original FICO score of 749.
“By leveraging our affiliated loan origination platform to accelerate loan purchase activity, we can compound the impact of the de-risking actions we’ve taken over the previous quarters while driving meaningful net interest income growth,” Prabhu said.
Want to keep up with the latest mortgage news? Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
